Tapestry (NYSE:TPR) Trading Up 4.2% After Analyst Upgrade

Tapestry, Inc. (NYSE:TPR) shares rose 4.2% during trading on Tuesday after Daiwa Securities Group upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $135.35 and last traded at $134.47. Approximately 896,856 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 2,427,307 shares. The stock had previously closed at $129.02.

TPR has been the subject of several other research reports. Evercore set a $175.00 price objective on shares of Tapestry in a research report on Friday, May 8th. Weiss Ratings upgraded shares of Tapestry from a “hold (c)” rating to a “buy (b-)” rating in a report on Friday, August 14th. Sanford C. Bernstein reissued a “market perform” rating and set a $185.00 target price (up from $180.00) on shares of Tapestry in a research note on Friday, August 14th. JPMorgan Chase & Co. raised their target price on shares of Tapestry from $205.00 to $211.00 and gave the stock an “overweight” rating in a report on Tuesday, August 4th. Finally, UBS Group lifted their price target on shares of Tapestry from $230.00 to $232.00 and gave the stock a “buy” rating in a research report on Friday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $175.12.

Insider Activity

In related news, CEO Todd Kahn sold 19,557 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $140.02, for a total transaction of $2,738,371.14. Following the completion of the sale, the chief executive officer directly owned 123,258 shares in the company, valued at approximately $17,258,585.16. This trade represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.32% of the stock is owned by company insiders.

Institutional Investors Weigh In On Tapestry

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TPR. BlackRock Inc. purchased a new stake in shares of Tapestry during the second quarter worth $2,610,995,000. Bank of America Corp DE acquired a new stake in Tapestry during the second quarter valued at $771,309,000. Schroder Investment Management Group grew its stake in Tapestry by 92.8% in the fourth quarter. Schroder Investment Management Group now owns 9,350,221 shares of the luxury accessories retailer’s stock valued at $1,194,678,000 after purchasing an additional 4,500,850 shares in the last quarter. Norges Bank purchased a new position in Tapestry in the fourth quarter valued at about $345,349,000. Finally, Wellington Management Group LLP grew its stake in Tapestry by 632.3% in the fourth quarter. Wellington Management Group LLP now owns 2,366,502 shares of the luxury accessories retailer’s stock valued at $302,368,000 after purchasing an additional 2,043,353 shares in the last quarter. Hedge funds and other institutional investors own 90.77% of the company’s stock.

Tapestry Stock Performance

The company has a current ratio of 1.75, a quick ratio of 1.25 and a debt-to-equity ratio of 3.44. The firm has a 50-day simple moving average of $145.78 and a two-hundred day simple moving average of $144.84. The company has a market capitalization of $26.22 billion, a price-to-earnings ratio of 18.04, a price-to-earnings-growth ratio of 1.67 and a beta of 1.43.

Tapestry (NYSE:TPR) last announced its quarterly earnings results on Thursday, August 13th. The luxury accessories retailer reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.04. Tapestry had a return on equity of 254.95% and a net margin of 19.09%.The business had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same period in the previous year, the company earned $1.04 EPS. The firm’s revenue was up 8.9% on a year-over-year basis. Tapestry has set its FY 2027 guidance at 7.800-7.900 EPS. As a group, sell-side analysts forecast that Tapestry, Inc. will post 7.94 earnings per share for the current fiscal year.

Tapestry Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 21st. Shareholders of record on Friday, September 4th will be given a $0.4625 dividend. This is a positive change from Tapestry’s previous quarterly dividend of $0.40. This represents a $1.85 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, September 4th. Tapestry’s payout ratio is presently 25.38%.

About Tapestry

Tapestry, Inc is a New York City–based house of fashion brands that designs, produces and distributes a range of accessible luxury and lifestyle products. The company manages a portfolio led by Coach, along with Kate Spade New York and Stuart Weitzman, each offering distinct product lines that include handbags and leather goods, footwear, ready-to-wear apparel, accessories, small leather goods, jewelry and lifestyle items. Tapestry’s operations encompass product design, marketing, wholesale partnerships, retail store operations and digital commerce.

Historically, the Coach brand traces its roots to a leather workshop in New York dating to the mid-20th century.